One accidental default - implications?

lobsta100

Hi

On my Virgin/ MBNA credit card, I was originally set up to pay the minimum payment by DD.

When I was in a position to pay more than the minimum, I wanted to set up a new DD for higher amount but the Virgin online system does not provide for this. So I had to cancel the original DD and set up a Standing Order.

What I did not realise that due to mix ups with the dates, my new SO did not come out until the new billing month had started, so I effectively missed a month's minimum payment. This created a default on my account.

What are the implications of this? Is one single (and accidental) default a big issue for my credit file? Will it affect decisions on credit in the future or is that only with several defaults? Can it be removed?

Sorry for all the questions, but I am not so knowledgeable in this particular area.

Thanks!

BigCraigJohn

I presume it is just a 1 rather than a d or 8.
If its a 1 its pretty minor, just pay the arrears, 1 late payment is not going to affect to much. If its an actual default you will of known about it as in they will of been in touch and you will of received a notice giving you 14 days to pay, usually this only happens after 3 years but MBNA are up there with the worst. If it was a full default then that is pretty serious and you wont get credit for 6 years.

Ps they do have to send you a letter telling you if you are late but this is not a default notice just a statement of default(charge)

lobsta100

BigCraigJohn wrote: »

I presume it is just a 1 rather than a d or 8.
If its a 1 its pretty minor, just pay the arrears, 1 late payment is not going to affect to much. If its an actual default you will of known about it as in they will of been in touch and you will of received a notice giving you 14 days to pay, usually this only happens after 3 years but MBNA are up there with the worst. If it was a full default then that is pretty serious and you wont get credit for 6 years.

Ps they do have to send you a letter telling you if you are late but this is not a default notice just a statement of default(charge)

Thanks - I am a little confused! I havent checked my credit report but is that where I would see if it is a "1" or a "d" or an "8"? All I know is it said "Late default sum - £12" and says your statement includes a default due to your late payment.

Not sure which of your categories this falls into!

serverking

A lot of these credit card firms use the word 'default' because it gets the response they require, where people see such written on their statement and think damn, I oughtta pay this fast. 'Late default sum' should read 'Late Payment sum'.

I've had a few 'unpaid's in my time, but it was down to how I was getting paid - I have since changed from weekly to monthly pay and moved all my direct debits to the end of the month when I know my salary can cope with them Don't worry about this. Most time it will show as a U (that's within CreditExpert)

HTH (hope this helps)

paint

lobsta100 wrote: »

Thanks - I am a little confused! I havent checked my credit report but is that where I would see if it is a "1" or a "d" or an "8"? All I know is it said "Late default sum - £12" and says your statement includes a default due to your late payment.

Not sure which of your categories this falls into!

MBNA should have reported this to the credit reference agencies as a level 1 missed payment for the month you missed. Had you not paid for the second month it would have been a 2 and so forth. It shouldn't register as a default so don't worry. You can get a copy of your credit report for £2 if you're concenred, but it'll be fine.